Proprietor booked for fraud of Rs 9.97 cr
New Delhi: Economic and Offences Wing (EOW) of Delhi Police registered a case of cheating and forgery on December 24 after they received the complaint from an official of Department of Trade and Taxes of Delhi government against alleged fraud in a pre-planned manner causing loss to the government for a sum of Rs 9.97 crore by the man from a private firm.
According to police, the complainant alleged that one Sanjay Garg from Saraswati Enterprises hatched a pre-planned scheme to cause the revenue loss to the government. "Garg claimed a tax credit of Rs 8.51 crore and was also in the process of claiming further credit of Rs 32.4 crore out of which credit of 31.30 crore subsequently blocked by the department," claimed the official in the complaint which later turned into First Information Report (FIR).
It further added that Garg got registration in VAT to do business in Delhi. After the major tax regime change in India, GST implemented and existing dealer of VAT regime migrated to GST regime. To verify the Input Tax Credit (ITC) of the firm, GST inspector conducted enquiries regarding the firm. "The officer visited the declared business premises situated in Karol Bagh and reported that the firm, as well as the proprietor, does not exist at the above address," FIR report claimed.
It further disclosed that the bank account number, IFSC code and the address declared in GST registration details by Garg was also found to be forged. "On visiting the address it was found that no branch of the bank is situated there. However, at another place in the same area branch of the bank was located. On further verification, it was revealed that no such bank account number exists," claimed the report.
The FIR further claimed that Garg obtained the GST/ VAT registration by playing fraud for misappropriation of government revenue to his own personal benefit. "Garg also created fake address proof and bogus bank account and used the same to get GST registration for committing the fraud," said the report. The police registered a case under sections 420, 468 and 471 of IPC and investigation is on.